Gelson’s Goes High-Tech to Manage Pricing and Promotions

SoCal grocer teams up with tech firm Clear Demand to implement new AI applications

1/16/2024

Gelson's is investing in automation and AI to address the interests and needs of price-conscious consumers.

Gelson’s is the latest grocer to share that it is investing in AI and other new grocery tech tools to shepherd its business through a competitive environment. The Southern California specialty retailer is teaming up with solutions provider Clear Demand to optimize pricing and promotions.

Through this partnership, Gelson’s will deploy Clear Demand’s AI technology to balance costs with its other ongoing investments in store-level innovation. The tools analyze historical sales to understand shoppers’ sensitivity to price and generate price and promotion strategies that account for pricing rules, cost changes, and competitor prices. The partnership will enable the independent Gelson’s to manage retail pricing strategies across all of its locations, including its latest store that opened in West Los Angeles in November.

Ronald Johnson, chief information and supply chain officer at Gelson’s, said that the time was right to pursue upgrades on both the shopper experience and operations fronts. “There is no doubt that our customers’ food buying habits and sensitivity towards price have changed,” he remarked. “Clear Demand was the unanimous choice to deliver the pricing and promotions necessary for our growth and transformation.”

Added James A. Sills, Ph.D., president and CEO of Clear Demand: “Manual tools and spreadsheets can’t keep up. Retailers need the deep analysis and automation found within AI and machine learning solutions to remain competitive and relevant. Gelson’s is an innovator, delivering an impeccable shopping experience with localized assortments for their neighborhoods. We’re thrilled to work with this leading retailer on their price and promotion goals and deliver increased value for their customers.”

Founded in 1951, Encino, Calif.-based Gelson’s operates 28 locations throughout Southern California. Each store offers a wide range of carefully curated produce, meat, seafood, bakery and floral items, as well as chef-crafted signature and seasonal recipes from Gelson’s Kitchen, including deli to-go and catering. The grocer is also known for its top-quality private brands, virtual educational and tasting events, and charitable and community partnerships.